In the latest trading session, Kraft Heinz (KHC) closed at $25.63, marking a -1.91% move from the previous day. This change lagged the S&P 500's daily gain of 0.47%. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, added 0.94%.
The stock of processed food company with dual headquarters in Pittsburgh and Chicago has fallen by 5.57% in the past month, lagging the Consumer Staples sector's loss of 1.75% and the S&P 500's gain of 2.32%.
The investment community will be closely monitoring the performance of Kraft Heinz in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.58, marking a 22.67% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $6.28 billion, indicating a 1.67% downward movement from the same quarter last year.
KHC's full-year Zacks Consensus Estimates are calling for earnings of $2.58 per share and revenue of $25.24 billion. These results would represent year-over-year changes of -15.69% and -2.34%, respectively.
Investors might also notice recent changes to analyst estimates for Kraft Heinz. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.12% lower. Kraft Heinz is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Kraft Heinz has a Forward P/E ratio of 10.13 right now. This indicates a discount in contrast to its industry's Forward P/E of 16.09.
It is also worth noting that KHC currently has a PEG ratio of 3.05. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Food - Miscellaneous was holding an average PEG ratio of 1.83 at yesterday's closing price.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Kraft Heinz Company (KHC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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